Bain & Company’s tenth annual study on retail banking trends finds that banks continue to lose business to fintechs and single-line specialists–but stopping the leak is possible
NEW YORK, Nov. 18, 2019 /PRNewswire/ — For the first time ever, Bain & Company has tracked banking customers’ experiences and moments during specific transactions that that both irritate and please customers on digital platforms, using its proprietary NPS Prism benchmarking tool. In a new report, As Retail Banks Leak Value, Here’s How to Stop It, released today, Bain reveals that retail banks are leaking customer business to competitor banks, fintechs and single-line specialists at alarming rates—but these losses are usually hidden as customers typically keep low-activity checking accounts with their primary banks. Established tech companies like Google are also entering the fray, further exacerbating the need for action from traditional banks.
Bain & Company’s tenth annual study on retail banking, conducted in conjunction with Dynata, surveyed more than 131,000 consumers in 22 countries. The research found that digital channels are the preferred means of purchasing banking products, with the share of product purchases via digital channels rising by 2 to 16 percentage points from 2017, depending on country. Total purchases via digital were between 18 and 60 percent by country, with the UK leading the pack.
Customers, especially younger ones, mostly use these…